Analysts at Rabobank notes that the level of net EUR shorts positions dropped sharply ahead of last week’s ECB meeting, according to the IMM net speculators’ positioning as at June 04, 2019.

“USD longs edged lower but once again lacked any drama. Net longs have remained essentially consolidative since the middle of March.

Net short GBP positions surged again in response to UK political tensions. The resignation of PM May and the strong showing for the Brexit party in the European parliamentary elections has meant that candidates for May’s replacement have hardened their Brexit positions. This leaves GBP vulnerable.

The level of JPY shorts dropped noticeably reflecting worsening tensions surrounding US/China trade talks.

CHF net shorts increased modestly.

CAD net shorts increased. BoC policy, trade talks and the recent drop in oil prices are in view.

AUD net shorts fell back after the RBA’s June rate cut with Governor Lowe being judged as holding a ‘glass half full’ outlook on the economy.”